During the first half of the current financial year 2026-27, there has been a tremendous increase in the direct tax collection of the country. According to the official data released by the Central Board of Direct Taxes (CBDT) and the Income Tax Department, India's Net Direct Tax Collection from April 1 to September 17, 2026 has crossed the level of ₹12,12,410.71 crore (approximately ₹12.12 lakh crore), registering an annual growth of 12.96 percent (approximately 13%). This figure was recorded at ₹10,73,272.17 crore in the same period of the last financial year. This strong growth reflects improved corporate profits in the Indian economy, strong domestic consumption and increasing participation of retail and institutional investors in the stock market. Complete mathematics of tax collection: Sharp increase in gross collection and refunds also. According to the data released by CBDT, the figures before and after the release of tax refunds are as follows: Gross Direct Tax Collection: Before adjusting for refunds, the total gross direct tax collection, before adjustment of refunds, reached ₹ 14.32 lakh crore with a strong growth of 15.19 percent, as against ₹ 12.44 lakh crore in the same period of the last financial year. 29% increase in tax refunds: As part of its policy of speedy issuance of refunds to taxpayers, the Income Tax Department has issued refunds worth more than ₹2,20,000 crore (₹2.20 lakh crore) till September 17, an increase of 29.19 per cent compared to last year's ₹1.70 lakh crore. 16.18% jump in advance tax: After the second quarter (September 15) advance tax installment, the total advance tax collection has reached ₹5,21,940 crore (approximately ₹5.22 lakh crore), registering a huge increase of 16.18% compared to the previous year. Corporate Tax vs Personal Income Tax: Who is Ahead? Corporate tax paid by companies has shown the fastest growth in the current financial year: Corporate Tax: Net corporate tax collection witnessed a spectacular jump of 19.48 per cent to reach ₹5.56 lakh crore (it was ₹4.65 lakh crore in the same period last year). At the same time, an increase of 18.09% was seen in Corporate Advance Tax and it was recorded at ₹4.16 lakh crore. Non-Corporate and Personal Tax (PIT & HUF): Net tax collection from individual income tax payers, Hindu Undivided Families (HUF) and firms increased by 6 per cent to cross ₹6.16 lakh crore. Advance tax from non-corporate category increased by 9.24% to close to ₹1.06 lakh crore. Miracle of Stock Market: Historic jump of 53% in STT collection. The most shocking aspect of this report has been the Securities Transaction Tax (STT) imposed on stock market transactions. There has been a huge jump of 53 percent in STT collections on the back of record trading and Futures and Options (F&O) volumes by retail investors in the Indian stock markets (BSE and NSE). Till September 17, 2026, ₹40,214.36 crore came to the government treasury through STT, whereas in the same period of the last financial year, this figure was only ₹26,305.72 crore. Budget Target and Impact on Fiscal Deficit The central government has set an ambitious budget target of raising a total of ₹ 26.97 lakh crore from direct taxes for the current financial year 2026-27, which is about 15 percent more than the previous financial year. Even before the end of the first half, the government has successfully achieved about 45 percent of its annual budget target. This strong surge in tax revenue will greatly help the central government in keeping its fiscal deficit within the target of 4.3 percent of gross domestic product (GDP). Strong revenue receipts will provide additional fiscal strength to the government to continue spending on infrastructure projects (Capex), highways, railways and social welfare schemes.
